Once you have chosen the company, write a one- two-page analysis of what the company could have done differently to be successful in the specific market.
Starbucks in the Australian Coffee Market.
Australia proved to be the toughest coffee market for Starbucks. When Starbucks entered the Australian markets, it did not conduct much advertising activities. The firm knew that more customers were aware of its products. This is an activity that contributed to the failure of the product. Starbucks should have entered the Australian markets differently by engaging in intensive marketing activities. Intensive marketing could have assisted in always reminding the customers of the existence of the Starbucks coffee products. It could also have reminded the consumers of the reasons why the coffee products and services exist in the market. The marketing activities would enable the firm to communicate the essence of the brand with a lot of clarity.
Starbucks should have put much consideration and analysis into the Australian culture. Managing the cultural aspects of the Australian culture could have acted as the best element for the success of the company (Berk, Billur, Obal, & Townsend, 2019). Starbucks could have conducted intensive research on the cultural differences in Australia to assimilate the most critical elements in their business activities. Additionally, learning the culture of the Australian people would have allowed the firm to position itself well in the mind of consumers with regards to offering the coffee products.
Starbuck should have learned the tastes and preferences of the Australian customers so that they could offer them with best products that suit them. The Australians had a very distinct taste and preferences, and the Starbucks company wanted to transfer the American culture to Australia. This made the company fail. The company should have learned and understood the Australian culture well to tailor their products and services appropriately.
There was already a well-developed culture in Australia, and the local firms were doing well when Starbucks entered the country (Newstex, 2015). Starbucks should have used reduced prices a strategy of penetrating the Australian market. The use of reduced coffee prices than those of the competitors could have attracted more consumers to purchase company products and services.
In conclusion, Starbucks failed to understand the Australian markets and decided to open more locations without understanding the market well. For the firm to survive in Australia, it could have conducted appropriate market research and understood the culture to position its products well in the market.